MCA debt in Pennsylvania
Pennsylvania has about 1.2 million small businesses employing roughly 2.5 million people, according to the SBA Office of Advocacy's 2025 profile. Health care, restaurants, manufacturing and retail lead small-business employment.
Pennsylvania was also home to Par Funding, a Philadelphia MCA funder whose CEO was sentenced in March 2025 to 15½ years in federal prison for racketeering and fraud, with $314 million in restitution ordered (IRS-CI announcement). It is an extreme case, but it shows why vetting a funder matters.
Pennsylvania MCA law: what actually protects you
Confessed judgments are still allowed
Pennsylvania permits confessed judgments on commercial instruments under Pa.R.C.P. 2950 and following rules. Confession is abolished only for consumer credit signed by individuals. Once a confessed judgment is entered, you challenge it by petitioning to strike or open it, which requires showing a defect on its face or a meritorious defense, and timing matters.
No disclosure law
Pennsylvania has not enacted a commercial financing disclosure law. A 2023–24 bill would have required disclosures and given borrowers a private right of action, but it did not pass.
Usury
Pennsylvania's 6% cap applies only to loans of $50,000 or less and doesn't cover business loans, and corporations can't raise usury as a defense. Arguments that an MCA is a disguised loan usually turn on New York law.
Debt-relief fee rules
In April 2025, the Pennsylvania Attorney General reached a $550,000 settlement with a debt-relief company over illegal advance fees. If any firm asks for large fees before doing work, be cautious.
If you're behind on an MCA in Pennsylvania
- Look for a confession of judgment or "warrant of attorney" in every agreement and guaranty.
- Act quickly if a confessed judgment is entered. Talk to a Pennsylvania attorney about a petition to strike or open.
- Vet any new funder before taking another position. See how MCA stacking works.
- Check for personal guaranties. See personal guarantees after a business closes.
How we help Pennsylvania owners
We are a flat-fee, independent MCA debt advisory firm based at 30 Montgomery Street in Jersey City, New Jersey, working with business owners nationwide by phone and video. We don't lend, we don't broker, and we don't take a percentage of any settlement, so our only job is to show you which path actually fits your numbers. A typical engagement starts with a free 30-minute review of your MCA contracts, your bank statements and any offers you've received, followed by a written plan comparing reconciliation, renegotiation, refinancing, settlement through a licensed provider, or attorney review.
Start with our MCA debt relief consulting overview, or see MCA debt help in other states.
We work with owners throughout Pennsylvania, including Philadelphia, Pittsburgh, Allentown, Harrisburg, Lancaster, Erie, Reading and Scranton.
Frequently asked questions
Renaissance Capital Advisors provides strategic consulting and referral services only. We are not licensed attorneys, CPAs, financial advisors, or a debt settlement company. Regulated debt-resolution work is performed by appropriately licensed third parties. Nothing on this page constitutes legal, tax, accounting, or financial advice. Consult a licensed professional before making binding decisions.